India has banned the export of non-basmati white rice, in an effort to prevent impending domestic price increases.
Rice prices have increased by more than 11% over the past year as a result of the country’s crops being damaged by heavy rains.
The Ministry of Consumer Affairs announced the change in policy and noted that non-basmati white grain currently makes up a quarter of India’s rice exports.
The move, according to experts, may increase the price of food globally.
The head of investment analysis and research at Hargreaves Lansdown, Emma Wall, stated that “it’s fair to say this will have quite an impact on global food prices.”
Following Russia’s withdrawal from a deal this week that guaranteed the safe passage of Ukrainian grain, including wheat, food supplies are already under pressure.
India is the world’s largest rice exporter, with more than 40% of global shipments. Most non-basmati rice is exported to Asian and African nations.
The Indian government tried to deter foreign sales by enacting a 20% export tax last year. Additionally, it has restricted the shipments of sugar and wheat.
But for Indian farmers, selling abroad can be more profitable than doing business at domestically.
The government said farmers would still be able to export other varieties of rice, such as long-grain basmati, making sure they “get the benefit of remunerative prices in the international market.”
According to the Directorate General of Foreign Trade, the state will also take requests to permit shipments to other nations into account based on food security needs.
Global food prices increased as a result of the invasion of Ukraine last year.
While those pressures have since subsided on a global scale, in India, bad weather has damaged crops in many northern states, driving up the price of many goods, including tomatoes and onions.
Source-BBC
